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US: Macy’s retailer lost nearly 4 billion USD due to the COVID-19 epidemic

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The global public health crisis has forced many brick-and-mortar retailers to “protect” cash, lay off employees, stop paying dividends and buy back shares to stay afloat.

US retailer Macy’s Inc on July 1 announced that it had lost $ 3.58 billion as stores were forced to close to prevent the spread of the COVID-19 epidemic, causing the value of its assets to drop. 3 billion USD.
The global public health crisis has forced many brick-and-mortar retailers to “protect” cash, lay off employees, stop paying dividends and buy back shares to stay afloat.

Macy’s CEO Jeff Gennette said that although stores have reopened, the COVID-19 epidemic will still impact US economic activity for the rest of this year. The retail chain operator says it doesn’t want to have to close stores again.
Macy’s net sales for the first quarter of fiscal 2020 (ended May 2, 2020) halved to $3.02 billion. The figures come as a number of Macy’s “country brands,” including J. Crew, JC Penney and Neiman Marcus Group, have filed for bankruptcy after failing to cope with uncertainties. of the market and the mountain of debt increased.

Previously, on June 25, Macy’s announced that it would lay off about 3,900 employees to save costs. Macy’s has also faced a sharp decline in the number of visitors to shopping stores, especially stores in shopping centers or urban areas that have been heavily affected by blockade measures to limit the number of customers. prevent the spread of disease.
In response to market changes, Macy’s has invested heavily in upgrading its e-business and personalized marketing, clearing unsold inventory, and offering online shopping services.

Macy’s share price fell nearly 6% in afternoon trading session 1/7 after the information was made.

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